From left: Korea Federation of Mid-sized Enterprises Chair Choi Jin-sik; Korea International Trade Association Chair Yoon Jin-sik; Korea Chamber of Commerce and Industry Chair Chey Tae-won; President Lee Jae-myung, then the Democratic Party of Korea's presidential candidate; Korea Employers Federation Chair Sohn Kyung-shik and Federation of Korean Industries Chair Ryu Jin, pose for a photo during a meeting between Lee and the heads of Korea's five major business lobby groups at the KCCI headquarters in Seoul on May 8. (KCCI)
From left: Korea Federation of Mid-sized Enterprises Chair Choi Jin-sik; Korea International Trade Association Chair Yoon Jin-sik; Korea Chamber of Commerce and Industry Chair Chey Tae-won; President Lee Jae-myung, then the Democratic Party of Korea's presidential candidate; Korea Employers Federation Chair Sohn Kyung-shik and Federation of Korean Industries Chair Ryu Jin, pose for a photo during a meeting between Lee and the heads of Korea's five major business lobby groups at the KCCI headquarters in Seoul on May 8. (KCCI)

South Korea’s major business lobby groups on Wednesday welcomed the election of President Lee Jae-myung, urging his administration to revitalize the economy and swiftly tackle national challenges amid an unprecedented level of global uncertainty.

The 60-year-old lawyer-turned-lawmaker secured a decisive victory in Tuesday’s early election, held two years ahead of schedule following the impeachment of former President Yoon Suk Yeol.

Business groups issued statements congratulating the new president and emphasized the urgent need to foster a more business-friendly environment. They also called for the easing of excessive regulations and greater investment in cultivating skilled talent.

The Korea Chamber of Commerce and Industry, the nation’s largest business lobby representing some 200,000 companies, expressed high hopes for the new government’s leadership in unifying the nation.

“Amid national crises such as low growth, falling birthrates and regional decline, compounded by rising protectionism and the (artificial intelligence) revolution, the new administration must demonstrate unifying leadership that brings together the nation’s capabilities to drive development and economic resurgence,” the KCCI said in a statement.

The new government takes office amid a fragile economic landscape marked by weakening fundamentals. The country is grappling with declines in industrial output, consumer spending and investment, according to recent data.

“We hope the Lee Jae-myung administration will lead South Korea to become one of the world’s top five economies by implementing pragmatic and performance-oriented policies,” the Federation of Korean Industries said in a statement. “We ask the new government to foster a business-friendly environment that encourages innovation and bold entrepreneurship.”

The Korea Enterprises Federation called for the new administration to “boldly reform regulations that hinder corporate growth and establish a flexible labor market and stable labor-management relations to create a favorable business environment.”

“The results reflect the public’s desire to overcome transitional challenges and usher in a new leap forward,” the group added.

Noting rapid changes in the global trade landscape, the Korea International Trade Association urged the new administration to make its best efforts in trade diplomacy. KITA also underscored the importance of expanding investment in next-generation industries, including AI, logic chips, future mobility and biotechnology, to ensure sustainable, export-led growth.

The Federation of Middle Market Enterprises of Korea also highlighted the pending negotiations with the United States to ease tariffs imposed under US President Donald Trump, which are currently suspended until July 8.

“The new administration’s top priority should be to pursue diplomacy firmly rooted in the national interest and respond proactively to the rapidly changing global economic order, including the US’ reciprocal tariffs imposed under the Trump administration,” the group stated.

Korea, Asia’s fourth-largest economy, is projected to grow by less than 1 percent this year, weighed down by weak private consumption, mounting household debt and a downturn in the construction sector.

Overall exports also declined in May, with shipments to the US falling 8.1 percent, largely affected by the US’ sweeping tariffs.

By Jo He-rim (herim@heraldcorp.com)